Bitcoin (BTC) recently jumped to over $106,000 during early Asian trading hours, then dropped back to about $104,500. This fluctuation happens as people expect a U.S. Federal Reserve (Fed) rate cut, likely reducing the main borrowing cost by 25 basis points to between 4.25% and 4.5%.
This would mean a total reduction of 100 basis points since September. Market participants are cautious that the Fed’s statements might lower expectations for more rate cuts, which could reduce the positive impact of the cut on risky assets like Bitcoin.
BTC’s future looks somewhat positive, as seasonal patterns usually support the cryptocurrency. Also, with President-elect Trump indicating a friendlier regulatory approach for crypto, the effects of a strict Fed might not last long. Talks about rate cuts from the Fed and expected easing from China indicate that Bitcoin’s positive outlook might continue.
Experts from LondonCryptoClub highlight that, although attention is on the speed of future cuts, the overall economic situation is favorable because of a worldwide trend of central bank rate cuts and more liquidity.
